Safaricom’s Ziidi Fund Posts Sh784 Million Profit as MMF Demand Surges

Safaricom’s Ziidi Money Market Fund has reported a profit of Sh784.2 million for the 14 month period ending December 2025, underlining strong investor uptake and accelerating growth in Kenya’s money market fund segment.

Financial statements show the fund generated close to Sh1 billion in investment income from a pool of about Sh14.7 billion in investor funds, reflecting rising demand for low-risk and highly liquid investment products.

The performance marks a strong debut for the fund, which is still in its early stages but has quickly gained traction among retail investors.

Operating expenses during the period stood at Sh250 million, supporting a healthy bottom line for the rapidly scaling product.

Ziidi allows users to invest directly through Safaricom’s M-Pesa platform, with a minimum investment of just Sh100.

The product offers daily interest earnings and instant access to funds, features that have helped attract a broad base of users seeking flexibility and convenience.

The fund’s structure enables seamless movement of money between wallets and investments without additional transaction costs, giving it a competitive edge over traditional money market funds that often require bank or mobile transfer fees.

Ziidi’s growth also reflects broader shifts in Kenya’s investment landscape, where more individuals are turning to money market funds as a haven amid economic uncertainty and fluctuating returns in other asset classes.

Industry data shows that total assets under management in money market funds rose by 7 per cent to Sh400 billion in the third quarter of 2025, up from Sh372.8 billion in June, highlighting the sector’s continued expansion.

The fund allocates investor capital across a mix of low-risk instruments, including government securities such as Treasury bills, call deposits, and interest-bearing accounts with financial institutions.

As of December 2025, a significant portion of the portfolio was held in call deposits and institutional placements, providing liquidity while maintaining steady returns.

Ziidi is jointly managed by Standard Investment Bank and ALA Capital, with a management fee set at two per cent of interest earned annually. The model aligns the fund’s earnings with investor returns, supporting sustainable growth as assets increase.

In addition to its core offering, Ziidi has introduced a Shariah-compliant option aimed at expanding access to Muslim investors by replacing interest-based returns with a profit-sharing model.

Safaricom has also indicated plans to extend the product to investment groups and businesses, further broadening its market reach.

The strong performance of Ziidi forms part of Safaricom’s wider strategy to transform M-Pesa from a payments platform into a full financial services ecosystem.

Over time, the company has expanded its offerings from basic transfers to include savings, credit, and now investment products.

Analysts say the success of Ziidi demonstrates how digital platforms are reshaping access to financial services, lowering entry barriers and enabling more Kenyans to participate in wealth creation.

For investors, the appeal lies in the combination of accessibility, liquidity, and relatively stable returns, particularly in a market environment where preserving capital has become a priority.

As competition intensifies in Kenya’s financial services sector, Ziidi’s rapid growth signals a shift toward digitally driven investment solutions, with mobile platforms playing an increasingly central role in shaping the future of savings and investment.

With strong early performance and expanding user adoption, the fund is expected to remain a key player in the evolving money market landscape, reflecting a broader transformation in how Kenyans invest and manage their finances.

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